An untraditional DTI question

[Kyle Curtin]

Hi everyone!

I have a question about DTI that is a little different.

To give a little insight on my situation, I am 20 years old with a pretty well paying full time HVAC Tech position, as well as working as a Realtor. I live at home and just have my credit card as my only debt (on paper). I pay one of my parents cash for room and board, I do not have student loans, have been driving the same car (has been listed under one of my parents since I was 16) and I am saving for my first househack.

I am starting to prepare my financials to show a lender and hopefully get some answers this week regarding pre qualification, but decided to run my DTI calculation today just out of curiosity.

With the gross amount that I make every month divided by my very small credit card bill, I have a 2% back end Debt to income ratio.

Does anyone know if lenders would like to see me take on more debt to ensure that I can manage it, or am I in a pretty okay situation?

Thank you so much,

Kyle

[Ryan Twombly]

@Kyle Curtin

Sounds like you are in a great position. In my experience your credit history is rolled up into your credit score but would not be a large factor in the eyes of the lender beyond that. A quick call to your local mortgage lender would be able answer any questions you might have. They will also be able to tell you exactly how much house you can afford. One thing to note is that you may have a hard time counting your real estate commissions and/or any potential rent from the property toward your income; the lender will likely only count your w-2 income toward the DTI.

I have experience househacking myself in central Connecticut and think it is an awesome way to get started, feel free to reach out if you have any questions!